Chrome Sector On The Rebound
ZIMBABWE’s chrome industry is set for a rebound in 2017 as world ferrochrome prices are expected to continue on the upward trend following years of declining returns.According to an International Chromium Development Association (ICDA) report, South Africa and Zimbabwe hold about 90 percent of the world’s chromite reserves and resources, with South Africa having reserves of about 3,1 billion tonnes and a further estimated resource of 5,5 billion tonnes.
Zimbabwe has reserves of about 140 million tonnes with resources of a further one billion tonnes.
It is the only country to exploit both stratiform and podiform deposits.
The stratiform deposits occur in the Great Dyke, approximately 550 km long and 11 km wide, while the podiform deposits occur in the Selukwe and Belingwe areas, according to ICDA.
International ferrochrome prices for the fourth quarter of 2016 averaged US$1,10 a pound, 12,2 percent up on US$0,98 a pound during the third quarter.
The increase in prices is set to continue into 2017, owing to a rise in demand for ferrochrome by Chinese stainless steel companies.
China is the world’s largest ferrochrome consumer
Higher demand prospects for ferrochrome by the stainless steel industry in China would translate to a 3,1 percent growth in chrome production, from 2, 6 percent last year, according to a global chrome industry barometer.
Locally chrome prices vary from US$40 to US$80 per tonne for lumpy chrome, depending on grade, while chrome concentrates attract US$84 a tonne.
On the export market, Zimbabwe’s chrome attracts between US$75 and US$100 per tonne for concentrates.
Zimbabwe could benefit from the firming ferrochrome prices if it steps up efforts to improve beneficiation and processing of raw chrome.
Zimbabwe has exported 28 840 tonnes of raw chrome valued at US$2 million since lifting of a ban on raw chrome exports last year.
Government last year reviewed royalty fees for chrome to five percent, from two percent.
By Nyasha Chingono
